This morning, the post below crossed my Twitter timeline… It spurred a discussion that seems to come up on my Twitter timeline every so often: home ownership and its advantages (and disadvantages). I have blogged extensively on the benefits of buying a house and mortgages, so for this post I would like to point out fallacies/untruths/exaggerations that are quoted as people explain the benefits of taking…
Read MoreNo matter what finance experts say about the demerits of home ownership, most of us want to own a home either as an investment or to give ourselves and our families a sense of security. When considering a mortgage, should you go for a fixed rate or a flexible rate mortgage? This post looks at the advantages and disadvantages of each option. Fixed rate mortgages …
Read MoreWe will continue our discussion on housing and mortgages as promised, but I would like to close on this series of posts sponsored by Barclays Kenya by giving a bit more detail on their fixed rate mortgage product. Definition A fixed rate mortgage is a mortgage where the interest rate is guaranteed to remain at an agreed upon level for a set period of time,…
Read MoreOne of my young but brilliant friends sent me this text early on a Saturday morning: “Do you think I should take a mortgage now?” He’s about 24 years, he has done really well career wise, and his pay slip could support a mortgage if he sacrificed a few luxuries well-to-do 24 year olds typically enjoy. Personal finance advisers sit on two extremes when it…
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Earlier this year, Peter Nduati, a homeowner and real estate investor sent this tweet that triggered a subsequent #52WeekChallenge chat. https://twitter.com/PeterNduati/status/958763616324542465?s=19 I acknowledge this need to own real estate. It probably comes from a homing instinct that makes us feel more secure when we own some “soil”. Maybe because we feel that a house is a solid investment, unlike the other investments which are considered…
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Yesterday, The Time published an article that cited the love for avocado as one of the things making home ownership an impossible goal for millennials. They were quoting Tim Gurner, an Australian millionaire and property mogul. “When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” Gurner told the Australian news show 60 Minutes….
Read MoreIt is no secret that the government would like Kenya to have just a few big banks. The Finance Cabinet Secretary at the last budget reading proposed a 400% increase in banks’ core capital from Sh1 billion to Sh5 billion, aimed at forcing consolidation and acquisition of the smaller banks. While he first disagreed with this, CBK governor’s initial enthusiasm for niche banks seems to be…
Read MoreMoney goes where you send it That is what my late grandpa and hero told me when I first got employed. I knew my grandfather for 31 of the 92 years he lived and one of the most important things he taught me was to be the master of my money. Being the master of your money means many things, but today I’d like us to…
Read MoreIn the last post we asked what happens if she earns more. Today, I want to discuss the different money models married couples (could) adopt and factors to take into consideration as you pick a money model for your marriage. Why is this important? Married couples argue about many things, but the worst arguments are likely to be about money. With this in mind, you…
Read MoreWith an inflation rate of 10%, and a mortgage interest rate of 15%, one needs to make at least 25% return from a house every year for the period of the mortgage to at least break even ~ Macharia